As e-commerce continues to increase its share of overall retail sales in the U.S., landlords and retailers alike are rethinking how to attract consumers to physical locations. If shopping at a brick-and-mortar location has lost the edge in convenience, it is now paramount to create an exceptional experience aimed at attracting shoppers.
In a new study, U.S. Placemaking, The Science Behind Placemaking in an Omnichannel World, CBRE lays out the key strategies that landlords, retailers and developers need to implement to be successful in this endeavor, including:
- Diversification of the tenants in a retail development.
- Adding technology perks such as free wi-fi to create convenience.
- Adding quality entertainment or expanding food and beverage offerings to heighten the experience.
As the study points out, in-store sales are consistently higher and more profitable than on-line sales, making the effort to achieve more foot traffic well worth it for any retailer, even those with a significant online presence.
“This is a global trend. While rooted in retail, it transcends that asset class – we’re seeing it in office, hotel, and residential environments across all geographies,” said CBRE’s Todd Siegel, who advises both retailers and retail landlords. “Retailers are now focusing on elements which enhance the experience outside their leased space. What experience is defined upon a consumer’s arrival? Is there music? Live events? Water features? Does the space speak formality or casual? All of these questions are being asked now as retailers want to make sure they are creating the right kind of experience for the customer.”
To learn more about the science of placemaking, click here to download the full report.